RIM’s failure to develop the Blackberry brand played a role in the fall of the phone.
The Blackberry phones have not been able to compete with the Android and Apple phones. With many analysts writing about the demise of RIM and it’s slow death. While there are technical issues that also affected the company and its phone. Few have focused on the issue of branding in the whole scenario, but as a marketer, I couldn’t resist.
Blackberry’s Brand
Blackberry’s brand grew out of it’s functionality. Many business people began using the phones because of their capabilities. It’s ‘brand’ of the ‘businessman’s phone’ grew organically through lifestyle association. RIM however never focused on developing the brand but rather let it grow on it’s own. Being the only phone with it’s capabilities, it stood out.
Enter Google and Apple
When the iphone and Android phones entered the market with the same smart phone capability, it created brand parity. Brand parity is when the customer perceives no major difference between competing products. How companies deal with this is by pushing and focusing on their brand. As customers would move beyond purchasing the product and begin purchasing the brand. So when Apple and Google brought their brands into the game, things began to look bad for Blackberry. Relegating them to a ‘metoo’ product.
Another interesting benefit of brands is their ability to create loyal customers. Without Blackberry constantly working on their brand, their customer loyalty fell. With a large number of customers switching to Apple and Android.
RIM took too long to address this issue and they are now paying for it. They have been effectively knocked out of the market and needed to make some tough strategic decisions. Looking at RIM’s new strategy (focusing on Enterprise business) I think they can succeed. I just hope they take their brand more seriously this time.
No comments:
Post a Comment